Page 245 - Design for Six Sigma for Service (Six SIGMA Operational Methods)

214 Chapter Eight

Emotional and self-expressive benefits are more subtle than functional
benefits and are thus more difficult to determine.
2. To understand the different segments of the customer market and their
different needs, wants, and behaviors. We need to find out how the market
segments. Because different market segments may have different
functional, emotional and self-expressive benefit needs, they may respond
differently to a brand promotion program. There are many possible seg-
mentation schemes; however, in the brand development process, the major
task is to find out which segments are the most attractive target for the
brand and most relevant to the brand identity development. Therefore, the
commonly used segmentation schemes include segmentation by benefits
sought and segmentation by price sensitivity.
3. To understand trends occurring in the customer markets so that the
current and future positioning of the brand can be better assessed. By
trends we mean the dynamics of the market and how the demand
pattern will change. Analysis of market data, such as sales volume
trends and profitability prospects of the submarkets, may help to
understand market trends. Understanding market trends provides
insight into changing motivations and emerging segments with
strategic importance. For example, in the coffee market, the sales of
regular supermarket brands declined from 1962 to 1993, but gourmet
coffee and coffeehouse sales increased. If a company is in the coffee
business, this information will certainly help to develop the position of
its brand in future markets.
4. To identify customer needs that current products do not meet. Unmet
needs are customer needs that are not met by existing products in the
market. They are strategically important because they can represent
opportunities for a company to make beneficial moves in the market. For
example, Black & Decker organized a focus group of 50 power tool
owners. The executives of Black & Decker visited the focus group
members’ homes and found out several major unmet needs. One of the
problems with cordless drills is that they run out of battery power before
the job is done. Black & Decker responded by offering detachable battery
packs that could be recharged quickly. Tool owners can have several
battery packs charged and when one battery runs out while they are
working, they can replace it with another in no time and recharge the run-
out battery. Several of these kinds of design moves really give Black &
Decker’s Quantum brand a core identity and competitive advantage.

Self-Analysis
The objective of this step is for management to examine the strengths and
weaknesses of its brand’s current situation, so as to understand how the